Doodhwala is set to digitize the milk delivery system. It is the first in Bengaluru to provide fresh farm milk directly to houses

Bengaluru-based digital milkman startup Doodhwala has raised an undisclosed amount of funding in its pre-series A round from investor Tom Varkey, a partner at Stonehill Capital, USA.

"Doodhwala is set to digitize the milk delivery system. We are the first in Bengaluru to provide fresh farm milk directly to houses. We have achieved this using a hybrid delivery model of part-time delivery boys and existing doodhwalas who have a milk delivery network," said Ebrahim Akbari, Co- Founder, Doodhwala.

"The infrastructure of fresh milk delivery in India is haphazard despite high demand and a shortage of supply. This gap makes us essential to milk suppliers and creates dependency on our delivery network. Customer acquisition is also very easy and cheap. Customers love the ease of receiving their daily essentials along with milk, and the comfort of getting in touch with their doodhwala."

Founded in 2015, Doodhwala, is progressing steadily with over 1, 00,000 monthly deliveries, claims the company.

The startup has expanded operations to Pune while other cities are in its pipeline. The company will be operationally profitable by the end of 2017.

"Doodhwala has an exceptional approach to the daily needs market. Their unit economics are healthy, as they have an impressive delivery infrastructure with a 25 percent month-on-month growth rate," said Investor, Tom Varkey.

"By lowering its delivery costs to Rs 3 - 5, Doodhwala is uniquely positioned in a sector where a lot of e-commerce players are struggling. I am excited about our partnership and look forward to seeing this promising company expand."

Doodhwala is soon looking to close its Series A round. The startup will use its current funding to upgrade its technology, further penetrate the market, and grow its team size.

"Morning delivery is an efficient model as it's becoming the answer for consumers to buy products they need daily. We have 80 per cent customer retention, and we are expecting the figure to increase in the next few months," said Aakash Agarwal, Co-Founder, Doodhwala.

"Our subscription model is the magic formula for customer loyalty, predictable income, user information and low inventory. It, additionally, gives customers the assurance that they will have what they need, before they need it.”